Philippines' manufacturing PMI falls to 47.4 in November: S&P

This is the lowest PMI since August 2021. 

The Philippines' manufacturing activtiy saw its sharpest decline in over four years after its Purchasing Managers’ Index (PMI) fell to 47.4 in November, down 50.1 compared to the previous month.

This was the country's lowest PMI since August 2021, according to S&P Global. 

Output and new orders both contracted at the fastest rates since August 2021, whilst exports, employment, purchasing and inventories also declined,it added.

New orders placed with manufacturing firms in the Philippines fell for the third month running, and at the fastest rate since August 2021.

The lower orders were attributed to weak customer demand and reduced requirements due to product life cycle changes, S&P said.

New orders in November fell for the third month running and at the fastest rate since August 2021. Many businesses also noted that the typhoon had caused disruptions to business activities.

Purchasing activity fell for the second month running, the first successive decline in over four years.

Amidst the new order fall, manufacturers shed staff for the first time since May in November. Whilst the overall rate of job shedding was only marginal, the fall was linked to layoffs and the non-renewal of contracts, S&P said.

Despite these declines, manufacturers in the Philippines showed increased confidence in the growth of output over the next 12 months.

Firms expect higher future output mainly due to anticipated new projects, increased orders,  economic development, new customers, and aggressive marketing, it added.